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TOWN OF TOLLAND

Town Council’sAnnual Budget Presentation

April 26, 2011 andApril 27, 2011 – Senior Center

FY 2011-2012OPERATING AND CAPITAL BUDGET

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Town Charter, § C9-9 - Annual Budget Presentation

Prior to the Annual Budget Referendum, the Town Council shall arrange for an Annual Budget Presentation to be held no later than one week prior to the Annual Budget Referendum……At the Annual Budget Presentation, the Council will present the Budget to be voted upon at the Annual Budget Referendum. Prior to such referendum the Council shall have no authority to modify the Budget from that presented at the Annual Budget Presentation. The Annual Budget Presentation is intended to provide information and encourage public discussion, and is in addition to prior public hearings relating to the development of the Budget at which public hearings, public comment and participation is encouraged.

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February 17, 2011 (Thursday) Capital Budget Public Hearing – Council Room – 7:30 p.m. March 8, 2011 (Thursday) Manager convenes joint meeting between Council and Board of Education (by April 11 per Charter requirement) – Council Room – 7:00 p.m. March 15, 2011 (Tuesday) Manager submits Budget to Council (by March 27 per Charter requirement) March 17, 2011 (Thursday) Advertise Public Hearing March 17, 2011 (Thursday) Mgr. discusses Budget w/Council–Council Room – 7:30 p.m. March 22, 2011 (Tuesday) Mgr. discusses Budget w/Council–Council Room – Immediately

following regular Town Council meeting. March 23, 2011 (Wednesday) Mgr. discusses Budget w/Council–Council Room – 7:30 p.m. March 29, 2011 (Tuesday) PUBLI C HEARI NG on Manager’s Recommended Budget: Board of Education, Town Government, Capital Improvement Plan – Tolland High School Auditorium – 7:30 p.m. April 5, 2011 (Tuesday) Council Discussion – Budget finalized – Council Room – 7:30 p.m. April 14, 2011 (Thursday) Advertise Budget April 26, 2011 (Tuesday) ANNUAL BUDGET PRESENTATI ON MEETI NG – Tolland High School Auditorium – 7:30 p.m. May 3, 2011 (Tuesday) Annual Budget Referendum By May 12, 2011 (Thursday) Council to establish mill rate upon referendum adoption

Budget Schedule: Important Upcoming Dates

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BUDGET MEETINGS TO DATE

1. Joint Meeting Between Town Council and Board of Education:February 10, 2011 (Fire Training Center)

2. Public Hearing on Capital Budget: February 17, 2011 (Council Chambers)

3. Joint Meeting Between Town Council and Board of Education: March 8, 2011 (Council Chambers)

4. Special Meeting to Discuss Budget (Planning & Community Development, Law Enforcement and Public Safety): March 17, 2011 (Council Chambers)

5. Special Meeting to Discuss Budget (Community Services, General Government, Town Manager/Human Resources, Insurances and Finance): March 22, 2011 (Council Chambers)

6. Special Meeting to Discuss Budget (Capital Budget and Public Works & Engineering): March 23, 2011 (Council Chambers)

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BUDGET MEETINGS

7. Public Hearing on Manager’s Recommended Budget: March 29, 2011 (Tolland High School Auditorium)

8. Special Town Council Meeting – Budget Finalized: April 5, 2011 (Council Chambers)

9. Annual Budget Presentation Meeting: April 26, 2011 (Tolland High School Auditorium)

10. Budget Presentation (daytime) at Senior Center: April 27, 2011, 12:30 p.m.

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Combined Vision Statement of Community Conversation Groups

Tolland is recognized as a desirable community in which to live.

Community means a sense of shared values accompanied by the

willingness to ensure the safety, well being and respect of our

neighbors and neighborhoods.

The Town provides efficient and high quality services in a fiscally

responsible and efficient way. Residents’ quality of life expectations

will be preserved by the Town continuing to promote a sound

infrastructure and recreational opportunities and with an engaged

citizenry committed to the betterment of the entire community

encouraging a balance among open space, residential and

economic development, a town budget process that expands

community involvement and a progressive educational system

that meets or exceeds the challenges of a common core of

knowledge.

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Budget Referendum: Tuesday, May 3

“Shall the Town of Tolland’s proposed 2011-2012 budget of $51,041,662, reflecting a spending increase of

$1,721,476 which is an increase of 3.49% resulting in a mill rate of 30.28 mills, be

adopted? Yes/No”

~~PLEASE VOTE ON MAY 3PLEASE VOTE ON MAY 3rdrd - POLLS - POLLS

ARE OPEN FROM 6 AM TO 8 PMARE OPEN FROM 6 AM TO 8 PM

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TOWN COUNCIL’S BUDGET GOAL FOR FY 11-12

Maintain and improveimportant services

Continue to provide a qualityeducation for our children

Produce a budget thatcan be approved by a majority of voters

as initially presented and meetsthe needs of the community

THIS BUDGET WILL:

Produce a moderatemill rate increase of

under 4%

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GROWTH

UNCERTAINTY

REVENUE

2011/2012 SUSTAINABILITY

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MAJOR REVENUE

CATEGORIES

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State Aid for Education (104,253) • ECS: 0

• Public School Transportation: (104,261)

• Adult Education: 8

• Aid to the Blind: (0)

Municipal State and Federal Grants (132,490)

Changes in State Aid and Other Sources of Revenuefor the Next Fiscal Year Over Current Year Revenues

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● Prior year taxes: 50,000● Interest, Liens & Suspense: 30,268● Telecommunications Access: 2,754● Charges for current services: 6,216● License, Permits and Fees: (46,000)● Interest and other revenues: (30,855)

Changes in State Aid and Other Sources of Revenuefor the Next Fiscal Year Over Current Year Revenues

TOTAL DECREASE IN REVENUE: (229,868)

Other Non-Tax Revenue:

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Summary of Available Additional Non-Tax Revenue for FY 2011/2012

Changes in Non-Tax Revenue ($229,868)Increased Use of Fund Balance $30,000Grand List Growth $406,355

Total Revenue available excluding taxes generated by a Mill Rate increase, for 2011/2012

$206,487

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TAX COLLECTION RATE

Each year an assumption is made as to the projected rate of collection as a percentage of the

Grand List.

Rate of Collection

Total Tax Revenue

Town Manager 98.6 $37,807,912

Town Council 99.0 $38,334,252

Additional Projected Revenue as a result ofthe increased rate of collection

$526,340

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FISCAL YR. GRANDENDED LIST MILL PERCENTJUNE 30 YEAR RATE OF LEVY

2002 2000 29.68 99.19

2003 2001 32.35 99.36

2004 2002 33.97 99.43

2005 2003 35.40 99.52

2006 2004 27.22 99.44

2007 2005 28.39 99.28

2008 2006 28.39 99.22

2009 2007 29.51 99.10

2010 2008 29.49 99.19

2011* 2009 29.15 98.99

* ESTIMATED

TOWN OF TOLLAND, CONNECTICUT

TAX RATES AND PERCENT OF LEVY COLLECTED

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CONSEQUENCES OF INCREASING COLLECTION RATES

Should tax collection fall below historical averages, shortfalls in tax collection or other revenue sources would have to be made up from:

• Freezing Expenditures

• Foregoing Capital Projects

• Use of Fund Balance

Using a slightly smaller tax collection rate over the past two fiscal years the Town collected more taxes than projected, which helped to offset reductions in other revenue line items and avoided the need to use budgeted or additional fund balance.

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FUND BALANCE

2011 estimated $5,654,614 11.19%

2010 $5,884,614 11.60%

2009 $5,755,314 11.40%

2008 $5,175,165 10.9%

2007 $4,386,381 9.1%

2006 $4,336,381 9.7%

2005 $3,906,752 9.3%

2004 $3,516,564 9.0%

2003 $3,082,745 8.2%

2002 $2,521,653 7.0%

2001 $2,257,148 7.0%

2000 $2,164,504 7.2%

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Tax Revenue Needed to Fund Expenditures

Identified in the Town Council’s Proposed

Budget

Increased Tax Revenue $1,921,344 (3.88% increase)

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SPENDING

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EXPENDITURE SUMMARY

Category Adopted 10/11

Recommended 11/12

Dollar Change

Percentage Change

Town Depts.

10,622,032

10,818,258

196,226

1.85%

Capital Expenditures

266,700

335,501

68,801

25.80%

Debt Service

4,622,919

4,751,796

128,877

2.79%

Board of Education

33,808,535

35,136,107

1,327,572

3.93%

Grand Total 49,320,186 51,041,662 1,721,476 3.49%

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2011/2012 EXPENDITURES BUDGET $51,041,662

21.19%

68.84%

9.31%

0.66%

Municipal Operating Education Debt Service Capital

$10,818,258 $35,136,107 $4,751,796 $335,501

Education

Debt Service

Capital

Municipal Operating

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TOWN OPERATING BUDGET

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Expenditure AdjustmentsSavings

Negotiated changes to Town employees’ Health Insurance Plans have mitigated increases in health benefits. Whereas overall, health benefits were calculated to increase 11%, the Town’s costs actually decreased by 3.5% due to the benefit changes. These changes saved the Town $116,456.

Elimination of Refuse & Recycling Coordinator position for a savings of $25,750. These responsibilities have been absorbed by the Director of Administrative Services and other staff.

Limited Adjustments

$100 on-call stipend for Part-Time Animal Control Officers ($5,200 annually split by days of the week worked). This is to recognize the two part-time employees who must be on call on off hours each day of the week. In addition, $5,000 for actual hours worked that are currently taken from personnel contingency.

Administrative Secretary in Fire Department increased from 35 to 40 hours to be in line with the operation of the Fire Office ($4,988 in salary).

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The position of Assistant Public Safety Supervisor budgeted starting October 1, 2011 at a cost of $54,444 with benefits for half a year. During the current fiscal year, the consulting firm of Field Services Inc. was engaged by the Town of Tolland to perform a feasibility study of the Tolland Fire Department and its ability to provide the current level of service to the Town in the coming years. The report stressed that moving forward, the department focus should primarily be personnel and staffing. Much focus was placed on the Public Safety Supervisor position which generally is considered a 40-50 hour position, but in reality works on a regular basis in excess of 70 hours per week. The demands of the position to supervise both paid and volunteer staff are 24 hours a day. The study concluded that “there is considerable concern that the Fire Chief may be overstretched”. The recommendation is to hire a second in command who can mirror the responsibilities of the Public Safety Supervisor in terms of supervising staff and responding to evening calls in a command capacity. In addition, this position would serve as a Deputy Fire Marshal and be in charge of the Town’s communication function. The Board of Directors of the Tolland Fire Department Inc. concurs with this recommendation and has stated “The Board heartily agrees with this conclusion. Volunteer officers cannot be counted upon to reduce the workload.”

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Included within the Fire, Public Safety, Emergency Management and Law Enforcement budgets are the cost of the administrative functions associated with the reverse 911 Everbridge System. This will allow for telephone messages to be sent to residents on general topics of importance ($4,050).

Adjust the pay grade level for the position of Public Safety Supervisor and Public Works Operations Manager by one grade and increase the base salary of each position by $5,000 to reflect increased responsibilities and work levels as well as hours worked at a cost of $9,000 (partial offset by State Grant).

Implementation of a Health Wellness Initiative at a cost of $7,000 paid out of funds available in the Health Insurance account in the current year. Industry experts predict that the Town should see reductions in future health insurance expenditures at a rate of 3-5 times the investment made in the Wellness Program.

Increase the cost share for Health Insurance, which unaffiliated employees of the Town will pay, from 14% to 16%, except for those employees who participate in the Health Wellness Initiatives which would reduce the increase by 1%.

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Re-title the positions of Working Foreman in the Parks & Facilities Department and Highway Superintendent in the Highway Department to Public Works Supervisor. Along with the Public Works Operations Manager, these two supervisory positions provide oversight and direction for all Parks and Highway activities. The initial cost for this reclassification will be an increase of $3,000 to the Working Foreman position; however, there will be a future savings of approximately $15,000 with the adjustment of the Highway Superintendent’s position to a lower wage group when the current employee retires.

$27,000 for the connection fee to tie the Hicks Municipal Building into the Town’s public sewer system.

The Water Commission and Water Pollution Control Authority have each authorized the allocation of $15,000 from their funds to hire a 24 hour per week, non-benefitted Engineering Assistant position to assist with the many technical responsibilities confronting the Commission. This position would work under the direction of the Town Engineer.

A $38,103 increase in the contractual cost for Resident State Trooper services.

A $500 increase in the Fire budget for the Explorer Program.

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Town Council Additions to the Budget Recommended by the

Town Manager

• Town Expenditures - $15,500 to fund the following items:– Move up the hiring date of the Assistant Public

Safety Supervisor from January 1, 2012 to October 1, 2011 at a cost of $15,000.

– $500 for program materials for the Fire Explorer program.

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BOARD OF EDUCATION

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Board of Education Request $36,016,107 6.53%

Town Manager Recommended $34,637,431 2.45%

Town Council Adopted $35,136,107 3.93%

BOARD OF EDUCATION FUNDING AS RECOMMENDED

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Board of Education Request

• Town Manager’s budget reduced the Board

of Education request but still increased

their budget by 2.45% or $828,896.

• Town Council’s adopted budget increased

the Town Manager’s proposal for the Board

of Education to 3.93% over 2010/2011 or an

increase of $1,327,572.

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Reduction to Original Board of Education Request Consist of the Following

• $595,000 savings in the Health Insurance Account as a result of

percentage increase adjustments. The rate of increase has been

lowered from 18.66% to 11.3% primarily through adjustments in

coverage for large claims and recommended by our health benefits

consultants.

• $100,000 savings in the Health Insurance Account from possible

conversion of employees to the HSA insurance platform.

• $95,060 savings from OPEB contributions for the next fiscal year

due to adequate annual funding of our Trust Account.

• $90,000 savings in special education costs due to a direct payment

in the same amount from the State Board of Education.

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ADJUSTMENTS TO BOE EXPENDITURE REQUEST

SourceTown Manager

AdjustmentsTown Council Adjustments

Direct Grants to BOE (-$90,000) (-$90,000)

Reduced OPEB Contribution (-$95,000) (-$95,000)

Insurance Rate Reduction (-$125,000) (-$595,000)

Savings from Project HSA Conversions

(-$1,095,525) (-$100,000)

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Tolland Public SchoolsProposed Operating Budget 2011-2012

April 26, 2011

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Tolland Public Schools2011-12 Proposed Operating Budget

2010-11 Adopted Budget $33,808,5352011-12 Proposed Budget $35,136,107

Increase in Dollars $ 1,327,572Percentage Increase 3.93%

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Tolland Public SchoolsElements of Increase Increase/Decrease

Personnel (Salaries & Benefits) $ 274,602 Medical insurance benefits $ 527,468 GASB Other Post Employment Benefits Transportation

$ 0 $ 107,797

Special Services Athletics (Personnel and Program)

$ 110,084 $ 172,564

Other (Instructional Programs, Facilities Services, Support Services)

$ 135,057

Total $ 1,327,572 3.93%

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Tolland Public Schools

Please Remember to Vote! Annual Budget Referendum

TuesdayMay 3, 2011

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CAPITAL EXPENDITURES

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SIGNIFICANT ON-GOING PROJECTS

• Implementation of HVAC/Geothermal improvements at

the Hicks Memorial Building.• Completion of extension of sewers up Route 195 to the

corner of Anthony and Baxter.• Implementation of roof improvements at Library.• Implementation of elevator at Town Hall.• Implementation of asbestos floor tile removal project at

the Middle School.

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FY11-12: SIGNIFICANT CAPITAL PROJECTSFUNDED BY THE GENERAL FUND

Total Amount: $335,501

• Sidewalk Paving - $15,000.

• Skylight Replacement - $26,000.

• Reserve for current year depreciation for

municipal vehicle replacement - $21,789.

Board of Education – Tolland Intermediate School:

Town Administration:

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FY11-12: SIGNIFICANT CAPITAL PROJECTSFUNDED BY THE GENERAL FUND

Total Amount: $335,501

• 7th and last payment for replacement of Engine #340 -

$70,000.

Fire Department:

Capital Equipment:

• Dump Truck #36 Replacement – Parks & Facilities

replacement of 1992 one ton Dodge dump truck with

a new one ton truck with plow and all season body -

$76,819.

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FY11-12: SIGNIFICANT CAPITAL PROJECTSFUNDED BY THE GENERAL FUND

Total Amount: $335,501

• Upgrade of Base Station Repeaters located at

Highway, Parks & Facilities and the Tower Site are

mandated by FCC to be licensed and operating in

narrowband emissions before 1/1/13 - $20,000 -

second of three payments.

• One additional gas pump and flow fuel part for

recently installed above ground fuel tanks at the

Highway Garage plus removal of the old tank -

$25,500.

Public Facilities:

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FY11-12: SIGNIFICANT CAPITAL PROJECTSFUNDED BY THE GENERAL FUND

Total Amount: $335,501

• Infrastructure Drainage designs for Weigold Road,

Baxter Street and Sugar Hill Road systems - $50,600.

Drainage:

Pavement Management:

• Design and construction of the rear parking lot at the

Hicks Memorial Municipal Center - $29,793.

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DEBT SERVICE

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TOLLAND DEBT SCHEDULE 2011-12 THROUGH 2015-16

% change

FY11/12 - $4,751,296 1.87%

FY12/13 - $4,797,741 .97%

FY13/14 - $4,724,537 (1.53%)

FY14/15 - $4,676,459 (1.02%)

FY15/16 - $4,691,778 (0.33%)

Both Moody’s & Fitch Financial rating agencies have indicated thatthe Town’s debt is moderate and manageable and in line withCommunities that have similar credit ratings.

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DEBT SERVICE FOR BUDGET YEAR: $4,751,796

School

Town

Debt Service Breakdown:

71%

29%

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TOTAL INCREASE IN SPENDING: $1,721,476

AMOUNT TO BE RAISED BY TAXESREQUIRING A MILL RATE OF 30.28: $38,334,252

INCREASE IN TAX RATE: 3.88%

FY 2011-12 BUDGET SUMMARY

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TAX IMPACTTAX IMPACT

Property Tax Impact of the Town Manager’s Recommended Budget for Three Average Assessments

2009 Assessment Equivalent Value Taxes at 29.15 Taxes at 30.28 Difference

$121,972 $174,246 $3,555 $3,693 $138

$196,130 $280,186 $5,717 $5,939 $222

$375,384 $536,262 $10,942 $11,367 $425

Formula to determine tax impact:Current assessment x current year mill rate (29.15)

Compared againstCurrent assessment x proposed mill rate (30.28)

Difference equals tax impact

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Click here onthe tolland.org home page toaccess theTax CalculationForm

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Tax Calculation Form FY2011/ 2012 Council Proposed Budget

This calculator reflects the Proposed Councils Budget which can be seen in

its entirety on the Town’s web page.

The final mill rate for the Town’s budget will be determined after a budget is approved at referendum which is held on May 3, 2011. Should the budget be defeated, additional

referendums are held every other Tuesday until a budget is adopted.

Known: Old Mil Rate 29.15 Known: New Mil Rate 30.28

Input the Following: (numbers ONLY, no commas or $)

(B) Your Home's Assessed Value 206500

Your new assessed value can be located by clicking here 2009 Revaluation Data. Hard copies of your assessment information including assessment prior

to revaluation are at the Town Assessor’s Office. Click to Calculate

(Results Appear Below)

Results: (Do not enter any information below this box)

Tax Information Description of Taxes $ Annual $ Monthly

Old Taxes Due Your Assessment multiplied by 29.15, then divided by 1,000.

6019.48

501.63

Proposed Taxes Due multiplied by 30.28 then divided by 1,000.

6252.82

521.07

Tax Change: Description of Change $ Annual $ Monthly

Additional Taxes due to Budget Increase

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What Can You As A Citizen Do Going Forward?

Become involved

Be informed…

• Sign-up for our E-blast newsletter on the website – tolland.org

• Like us on facebook and follow us on Twitter at Town of Tolland

• Volunteer for town boards/commissions◦ Board of Building Appeals◦ Permanent Celebration Committee◦ Tolland Economic & Community Development Corporation

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◦ Tolland Energy Task Force◦ Tolland Non-Profit Housing Corp.

• Submit suggestions, questions or comments via the town’s website; a new interactive suggestion/comment box will become active soon on the homepage through which citizens can submit an inquiry and then view the Town’s posted response

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Voting District #1: votes at the Hicks Memorial Municipal Center (town hall) at 21 Tolland Green (located at the intersection of Route 195 and Old Post Road) in the gymnasium. Parking is available in the main parking lot off of Old Post Road.

Voting District #2: votes at Tolland Senior Center at 674 Tolland Stage Road. Parking is available.

You may direct questions regarding your voting district to any of the following offices:

Registrars of Voters - (860) 871-3634Town Clerk’s Office – (860) 871-3630

Town Manager’s Office – (860) 871-3600

ANNUAL BUDGET REFERENDUM IS ANNUAL BUDGET REFERENDUM IS

TUESDAY, MAY 3 - POLLS ARE OPEN TUESDAY, MAY 3 - POLLS ARE OPEN

FROM 6:00 AM TO 8:00 PMFROM 6:00 AM TO 8:00 PM

Tolland Has Two Polling Places:

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Budget Referendum: Tuesday, May 3

“Shall the Town of Tolland’s proposed 2011-2012 budget of $51,041,662, reflecting a spending increase of

$1,721,476 which is an increase of 3.49% resulting in a mill rate of 30.28 mills, be

adopted? Yes/No”

~~PLEASE VOTE ON MAY 3PLEASE VOTE ON MAY 3rdrd - POLLS - POLLS

ARE OPEN FROM 6 AM TO 8 PMARE OPEN FROM 6 AM TO 8 PM